Bajaj Auto Receives Rs 10 Cr GST Penalty

Bajaj Auto Receives Rs 10 Cr GST Penalty

Bajaj Auto Ltd. has been levied a penalty and interest totaling over Rs 10 crores by the tax authorities concerning the differential GST on the classification of its instruments cluster. The company stated that it plans to legally challenge the decision.

The Joint Commissioner, Central GST, Pune - II Commissionerate issued an order confirming the classification of the instruments cluster under HSN code 8708/8714 for the period of July 2017 to March 2022, in contrast to Bajaj Auto’s adopted classification of 9029. As per the order, the differential GST demand amounted to Rs 10,03,91,402, which the company’s deposited taxes were used to adjust.

Additionally, the order included an interest charge and a penalty equivalent to Rs 10,03,91,402, along with a general penalty of Rs 25,000, bringing the total penalty to Rs 10,04,16,402. Bajaj Auto, however, disagrees with the decision, arguing that the order lacks merit and goes beyond the Commissioner’s jurisdiction. The company also highlighted that a writ petition challenging the show cause notice is currently pending before the Bombay High Court.

Bajaj Auto emphasized that it has a strong case and intends to pursue legal action against the order. The company reassured that the matter would not have significant financial consequences.